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2012-28018 Reso RESOLUTION NO. 2012-28018 A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, ADOPTING FISCAL YEAR (FY) 2012/13 BUDGETS FOR SPECIAL REVENUE FUNDS FOR RESORT TAX; THE 7" STREET PARKING GARAGE OPERATIONS;THE 5" AND ALTON PARKING GARAGE OPERATIONS; ART IN PUBLIC PLACES (AiPP), TOURISM AND HOSPITALITY SCHOLARSHIP PROGRAM, GREEN/ SUSTAINABILITY FUNDS, WASTE HAULER ADDITIONAL SERVICES AND PUBLIC BENEFIT FUNDS, EDUCATION COMPACT FUNDS, RED LIGHT CAMERA FUNDS, AND EMERGENCY 911 FUNDS. WHEREAS, expenses related to tourism, monitoring and auditing payments, and receipt of Resort Taxes to the City, will be paid by the Resort Tax Fund; and WHEREAS, the budget for the public parking garage located at 7th Street and Collins Avenue (the 7th Street Parking Garage) provides funding for operating expenses, debt service, and a reserve for renewal and replacement; and WHEREAS, the budget for the public parking garage operations located at 5T" and Alton provides funding for the City's share of the shortfall contribution requirements; and WHEREAS, the Art in Public Places (AiPP) fund is used for the commission or acquisition of works of art, conservation and maintenance of works of art, research and evaluation of works of art, printing and distribution of related materials, and administration; and WHEREAS, the Tourism and Hospitality Scholarship Program funded by contributions from Global Spectrum and Centerplate and awarded to Miami Beach students enrolled or planning to enroll in post-secondary education and have expressed interest in the food and hospitality industry; and WHEREAS, the Green/Sustainability fund provides funding for the operating budget for a Citywide Multi-family Residence and Commercial Establishment Recycling Program, including an initiation of a media, education and outreach recycling campaign; and WHEREAS, the Waste Hauler Additional Services and Public Benefit Contribution funds for sanitation-related services including monthly "Wasteful Weekends" bulk drop off site expenses and twice yearly hazardous waste drop-off site expenses; and WHEREAS,- the Education Compact fund provides funding for teacher development programs and fees to the International Baccalaureate Organization; and WHEREAS, the Red Light Camera fund provides funding for red light camera-related operating expenses; and WHEREAS, the Emergency 911 fund provides funding for E-911 related operating expenses; and NOW, THEREFORE, BE IT DULY RESOLVED BY THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, that the Mayor and City Commission hereby adopts and appropriates the FY 2012/13 budgets for Special Revenue Funds as listed below: SPECIAL REVENUE APPROPRIATIONS FY 2012/13 Resort Tax $54,254,000 7th Street Garage Operations 2,200,000 5th & Alton Garage-City's Share of Shortfall 619,900 Art in Public Places 213,000 Tourism and Hospitality Scholarship Program 113,000 Green/Sustainability Fund 195,000 Waste Hauler Additional Services & Public Benefit Fund 64,000 Education Compact Fund 101,000 Red Light Camera Fund 314,000 Emergency 911 Fund 651,000 TOTAL $58,724,900 PASSED and ADOPTED this 27th day of September, 2012. ATTEST BY: A E3 MOOR CITY CLER INCORP ORATED' Cb C� 26 APPROVED AS TO FORM &LANGUAGE &FOR EXECUTION J, - t. �_ q -C) ty Attorn Date COMMISSION ITEM SUMMARY Condensed Title: A resolution of the Mayor and City Commission of the City Of Miami Beach, Florida,adopting the Fiscal Year(FY) 2012/13 budgets for Special Revenue funds for Resort Tax; 7th Street Garage Operations; City's Share of the Shortfall Contribution Requirements for the 5th and Alton Parking Garage Operations;Art in Public Places(AiPP); Tourism and Hospitality Scholarship Program; Green/Sustainability Fund, Waste Hauler additional Services and Public Benefit Contribution Fund; Education Compact Fund; Red Light Camera Fund; and Emergency 911 Fund. Key Intended Outcome Supported: Ensure expenditure trends are sustainable over the long term; Improve the City's overall financial Health and maintain overall bond rating; Increase Community Satisfaction with City Services Supporting Data(Surveys,Environmental Scan,etc.): Based on the 2009 community survey,quality of life in the City is rated highly,the City is seen as an'excellent'or'good'place to live,work,play or visit,and over 3/'s of residents would recommend it to others as a place to live.Impressively,31 of the residential tracking questions from 2007 experienced increases in each of the areas measured by an overall average of approximately 7.0%;and 28 of 32 business tracking questions experienced increases measured by an overall average of approximately 8.8%. Relevant findings were:arts and culture was one of services identified that the city should strive not to reduce;and availability of public parking was one of the services identified as key drivers of overall satisfaction levels. Issue: Shall the Mayor and City Commission adopt the attached resolution which adopts the FY 2012/13 budgets for Special Revenue funds? Item Summa /Recommendation: The Resort Tax Fund FY 2012/13 budget includes funding for administrative expenses,allocation to General Fund for tourist related services,contributions to the GMCVB AND VCA,special events,holiday decorations,tourism related economic enhancements, marketing etc. The 7th St. Garage Fund FY2012/13 budget includes funding for the operating and debt service expenses of the 7th St. Garage. The 5th and Alton Fund FY2012/13 budget includes funding for the operating expenses of the 5th and Alton Garage. The Art in Public Places(Aipp) Fund FY2012/13 budget includes funding for the administrative expenses,AiPP projects under$25k and reserve for AiPP projects. The Tourism and Hospitality Scholarship Program Fund FY2012/13 budget includes funding for scholarships for Miami Beach residents or graduates of Miami Beach Senior High School in the food&hospitality industry. The Green/Sustainability Fund FY2012/13 budget includes funding for the operating budget for a citywide multi-family residence and commercial establishment recycling program, including a media,education and outreach recycling campaign, as well as the LEED project incentive. The Waste Hauler Additional Services & Public Benefit Fund FY2012/13 budget includes funding for sanitation related services. The Education Compact Fund FY2012/13 budget includes funding for the IB program &teacher training. The Red Light Camera Fund FY2012/13 budget includes funding for red light camera related operating expenses. The E-911 Fund FY2012/13 budget includes funding for E- 911 related operating expenses. Advisory Board Recommendation: Financial Information: Source of Amount Account Approved Funds: 1 54,254,000 Resort Tax 2 2,200,000 7th Street Garage Operations OBPI 3 619,900 5th&Alton Garage Operations 4 213,000 Art in Public Places � 5 113,000 Tourism and Hospitality Scholarship Program _ 6 195,000 Green/Sustainabilit Fund 7 Waste Hauler Additional Services & Public 64,000 Benefit Contribution Fund 8 101,000 Education Compact Fund 9 314,000 Red Light Camera Fund 10 651,000 Emergency 911 Fund Total $58,724,900 City Clerk's Office Legislative Tracking: Sign-Offs: Department Director Assistant City Manager City kt0ager MIAMIBEACH AGENDA.ITEM SATE I MIAMI BEACH City of Miami Beach, 1700 Convention Center Drive,Miami Beach, Florida 33139,www.miamibeachfl.gov COMMISSION MEMORANDUM TO: Mayor Matti Herrera Bower and Members of the City Co mission FROM: Kathie G. Brooks, Interim City Manager DATE: September 27, 2012 SUBJECT: A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, ADOPTING FISCAL YEAR (FY) 2012/13 BUDGETS FOR SPECIAL REVENUE FUNDS FOR RESORT TAX; THE 7th STREET PARKING GARAGE OPERATIONS; THE 5th AND ALTON PARKING GARAGE OPERATIONS; ART IN PUBLIC PLACES (AiPP), TOURISM AND HOSPITALITY SCHOLARSHIP PROGRAM, GREEN/SUSTAINABILITY FUNDS, WASTE HAULER ADDITIONAL SERVICES AND PUBLIC BENFIT CONTRIBUTION FUNDS, EDUCATION COMPACT FUNDS, RED LIGHT CAMERA FUNDS, AND EMERGENCY 911 FUNDS.. ADMINISTRATION RECOMMENDATION Adopt the Resolution ANALYSIS The City currently offers certain programs and activities not supported through the general operating budget, but by outside agency grants and self-supporting user fee programs. Funding from these sources will be utilized as follows: Resort Tax a $54,254,000 This fund operates for the collection of the special tax levied citywide on food, beverage and room rents used to support tourism related activities. This function, which operates under the direction of the Finance Department and the Office of Internal Audit, is responsible for ensuring that hotels, restaurants, bars and other establishments which serve food and beverages for consumption on its premises, comply with Section 5.03 of the City Charter, as amended, as it related to the reporting, and collection of resort taxes to the City. An allocation for "operations" provides for all collection and audit expenses associated with administering the Resort Tax function and are charged directly to this Special Revenue Fund. Included in this allocation is funding for seven (7) FTE positions and associated operating support totaling approximately $1,353,195. The allocation to the General Fund for Fiscal Year 2012/13 of approximately $30.97 million pays for tourist related services and costs provided or managed by General Fund Departments. Based on an outside consultant study conducted in 2010 using FY 2007/08 actual costs, it is FY 2012/13 Special Revenue Fund Budgets September 27, 2012 Page 2of6 estimated that there are approximately $41.7 million in eligible resort tax expenditures in the General Fund, net of South Pointe tourism eligible costs. This funding supports public safety programs including our ocean rescue, police services on Lincoln Road, Ocean Drive/Lummus Park, Collins Avenue, Washington Avenue, ATV officers, Boardwalk security, special traffic enforcement and special event staffing; and fire rescue units in tourist and visitor areas. The funding also supports code compliance services to respond to evening entertainment areas and provides for a portion of the operational costs of the Tourism and Cultural Development. , The Fiscal Year 2012/13 Resort Tax budget also includes an allocation to the Greater Miami Convention and Visitors Bureau (GMCVB) of approximately $5.3 million, $1.2 million for debt service, $2.1 million to the Miami Beach Visitor and Convention Center (VCA), $248,000 for a local Miami Beach marketing campaign, including $148,000 for the Washington Avenue tourism enhancement initiative, to be augmented with funds from the GMCVB, the VCA, and the Cultural Arts Council (CAC); and including $75,000 for a grant to the FIU-Wolfsonian over two years to provide a master plan for the Museum site that will be used to access $10 million in Miami-Dade County General Obligation Bond funding for expanding and revitalizing their facilities on Washington Avenue and Lennox. Further, the FY2012/13 Resort Tax Budget maintains funding for tourism-related economic development activities in North Beach that were initiated in FY 2011/12; provides $165,000 for holiday decoration (an enhancement of $40,000 from the FY2011/12 budget); funds $100,000 for the sponsorship fee to help offset marketing and advertising expenses associated with the Ms. USA or equivalent event; funds $2.9M for enhancing the outcomes from major events such as Memorial Day, including management, Goodwill Ambassadors, and $122,130 in Administrative Fees to the General Fund for reimbursement of support provided by General Fund administrative departments. The proceeds of the additional one percent (1 percent) tax are used as follows. Fifty percent of the amount earned is committed to the payment of a portion of the debt service on the Miami Beach Redevelopment Agency — City Center/Historic Convention Village Bonds. These bonds were used for the development, improvement and construction of certain public areas including a portion of the Cultural Center facilities located within the City Center District. The remaining fifty percent of the 1 percent tax budget also reflects the approved allocation method for the Quality of Life funding, which includes the 25 percent for the arts, and to fund Quality of Life capital projects in North Beach (25 percent), Middle Beach (25 percent), and South Beach (25 percent), as well as various art and cultural programs or the maintenance and enhancement of Miami Beach's tourist related areas. Please see Attachment "A" for the revenue and expenditure detail budget. Revenues 2 percent $44,132,000 1 percent 9,368,000 Other Revenues 754,000 Total $54,254,000 FY 2012/13 Special Revenue Fund Budgets September 27, 2012 Page 3of6 Expenses Administrative Operating including Administrative Fees $ 1,353,195 Allocation to General Fund for Tourist Related Services 30,965,000 Contribution to GMCVB 5,309,000 Contribution to VCA 2,118,361 Marketing 100,000 Special Events/ Goodwill Ambassadors 2,846,884 Holiday Decorations 165,000 Contingency 482,241 Tourism Related Economic Enhancements (Washington Ave. & North Beach) 156,000 Transfers to FIU Wolfsonian and Ms. USA or Equivalent Event 175,000 Quality of Life Capital Projects & Cultural Programs 4,684,000 Debt Service 5,899,319 Total $54,254,000 7t" Street Garage - $2,200,000 The Parking Department is responsible for the collection of the revenues in this garage which will be used to pay associated operating expenses and debt service. The operating budget is required to cover operating expenses, debt service, and reserve for replacement. Revenues Garage Operations $2,170,475 Retained Earnings 29,525 Total $2,200,000 Expenses Operating Expenses $1,237,298 Debt Service 784,401 Reserve - Renewal & Replacement 178,301 Total $2,200,000 5t" and Alton Garage - $162,500 The 5t" and Alton Garage a.k.a. "Potamkin Garage" is a joint venture development between the City of Miami Beach (City) and Potamkin/Berkowitz (Developer) where a condominium has been established wherein the City and Developer contributes 46 percent and 54 percent, respectively, to the operating expenses of the parking garage and also shares profits and losses consistent with the aforementioned distribution. The Parking Department is responsible for the collection FY 2012/13 Special Revenue Fund Budgets September 27, 2012 Page 4of6 of the revenues in this garage. In the event of any shortfall, the City's portion shall be made up by funds from excess revenues in the Parking Fund. Revenues Garage Operations $457,400 Transfer from FY 2012/13 Parking Operations Budget 162,500 Total $619,900 Expenses Operating expenses $619,900 Art in Public Places (AiPP) - $213,000 The Art in Public Places (AiPP) Ordinance (Ordinance No. 95-2985) was adopted in 1995. The ordinance was created to "enhance the aesthetic environment of the City of Miami Beach by including works of art on public property within the City and in City construction projects." The AiPP Ordinance was amended in May 2004 to clarify the definition of terms for eligible construction projects for funding as well as the policy and procedures for appropriations. The AiPP Guidelines were also adopted by the City Commission at that time. The AiPP program is funded by 1 '/2 percent of all hard costs of City projects, including new construction, additions, and costs for construction of joint private/public projects. The fund is used for the commission or acquisition of works of art; conservation and maintenance of works of art; research and evaluation of works of art; printing and distribution of related materials; and administration. The FY 2012/13 AiPP budget of $213,000 is funded from capital budget appropriations in the amount of$213,000. Revenues Prior Capital Budget Appropriations $213,000 Expenses Administration $148,000 AiPP Projects Under$25K 20,000 Reserve for AiPP Projects 45,000 Total $213,000 Tourism and Hospitality Scholarship Program - $113,000 The City of Miami Beach Tourism and Hospitality Scholarship Program began in 2003 in partnership with the Greater Miami Convention and Visitors Bureau (GMCVB), SMG and Centerplate. Contributions to the City's scholarship program were contractually required of the three (3) entities. During the GMCVB's contract renewal in 2004, the requirement was removed from their contract. In September of 2008, the City replaced SMG with Global Spectrum. Global Spectrum and Centerplate currently partner with the City on this program and contribute $12,500 and $20,000 respectively annually. There is also a carry forward balance of $80,500 available. FY 2012/13 Special Revenue Fund Budgets September 27, 2012 Page 5 of 6 The scholarship program is geared toward Miami Beach residents or graduates of Miami Beach Senior High School who are enrolled or are planning to enroll in post-secondary education and have expressed interest in the food and hospitality industry (as demonstrated by coursework and extracurricular activities). Since the inception of the program, $214,500 has been awarded to more than 43 different Miami Beach students. Revenue Carry forward balance $80,500 FY 2012/13 Contribution $32,500 Total $113,000 Expenses Reserve for FY 2012/13 & Future Scholarships $113,000 Green/ Sustainability Funds $195,000 The Environmental Sustainability fund provides funding for the operating budget for a citywide multi-family residence and commercial establishment recycling program, including an initiation of a media, education and outreach recycling campaign. In addition $50,000 is recommended for LEED project incentive funding, if needed. Revenues Carry forward balance $195,000 Expenses Recycling/ LEED program expenses $195,000 Waste Hauler Additional Services & Public Benefit Funds $64,000 Waste Hauler Additional Services and Public Benefit Contribution funds for sanitation related services including monthly "Wasteful Weekends" bulk drop off site expenses and twice yearly hazardous waste drop-off site expenses Revenues Carry forward balance $ 64,000 Expenses Sanitation-related services $ 64,000 Education Compact Funds $101,000 The Education Compact fund provides funding for teacher development programs and fees to the International Baccalaureate Organization. FY 2012/13 Special Revenue Fund Budgets September 27, 2012 Page 6of6 Revenues Carry forward balance $ 101,000 Expenses IB Program &Training $ 101,000 Red Light Cameras $314,000 The City's Red Light Camera Photo Enforcement Program went into effect on April 15, 2010. Overall data shows that driver behavior is being modified, as the number of violations per intersection has declined since the inception of the program. Average number of violations issued per day is now 1.63. In comparison, a total of 7,572 red light camera violations were issued in 2010, with an average of 2.94 per camera per day. In 2011, 7030 violations were issued with an average of 1.94 violations per day. As a consequence of positive driver behavior, as well as changes in State law which impacted the amount retained by the City, revenues net of expenditures have declined, and no transfers to the General Fund are anticipated in FY 2012/13. Revenues Violation Revenue $314,000 Expenses Operating Expenses $314,000 Emergency 911 Funds $651,000 The Emergency 911 funds were previously budgeted in the Citywide (General Fund) accounts. Beginning with the FY 2012/13 budget, the administration has made a policy decision to create a separate fund for the E-911 budget, and remove it from the Citywide Accounts. This will allow for more discrete reconciliation of revenues and expenses. Revenues Landline E-911 Revenue $302,000 Landline E-911 Revenue 349,000 Total $651,000 Expenses E-911 Operating Expenses $651,000 CONCLUSION The attached Resolution adopting funding for FY 2012/13 budgets from these sources is vital to the continuation of these projects and activities provided by the City. KGB/TOS/PAR